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Trump demands Lisa Cook resign

Trump Demands Lisa Cook Resign as Mortgage Fraud Allegations Shake the Fed

Former President Donald Trump on Wednesday openly demanded that Federal Reserve Governor Lisa Cook resign following explosive allegations of mortgage fraud. The call came after Bill Pulte, director of the Federal Housing Finance Agency (FHFA), formally urged the Department of Justice (DOJ) to investigate Cook’s real estate dealings.

The situation marks the latest clash between Trump and the Federal Reserve, with growing pressure on Fed leadership as interest rate decisions remain a central political battleground.

📌 Story Highlights

  • Trump demands Lisa Cook resign over mortgage fraud allegations

  • FHFA chief Bill Pulte sends letter to DOJ seeking criminal probe

  • Accusations involve properties in Michigan and Georgia

  • Cook, a Biden appointee, voted to hold interest rates steady

  • Trump increases pressure campaign on Fed Chairman Jerome Powell

Trump’s Direct Demand

In a fiery post on Truth Social, Trump declared:

“Cook must resign, now!!!”

The message linked to a Bloomberg report detailing Pulte’s allegations. Trump’s blunt demand underscores his ongoing push against the Federal Reserve and his criticism of officials appointed during the Biden administration.

Pulte Levels Fraud Allegations

Bill Pulte, who has emerged as one of Trump’s strongest allies in attacking the Fed, laid out his accusations in both a formal letter and on social media. He claimed that mortgage records reviewed by the FHFA raise serious questions about Cook’s property transactions.

According to Pulte’s letter, Cook allegedly falsified residence statuses for homes in Ann Arbor, Michigan, and Atlanta, Georgia, in order to secure more favorable loan terms. He further alleged that bank documents and property records may have been altered, actions he described as “potential mortgage fraud.”

Social Media Attacks

On Wednesday morning, Pulte intensified his criticism in a series of posts targeting both Cook and Fed Chairman Jerome Powell.

“Lisa Cooked is cooked,” he wrote in one post, before later adding that Trump “has cause to fire” her.

Turning his attention to Powell, Pulte quipped:
“I hear Jay Powell is scrambling this morning. He can scramble all he wants, but he might as well be scrambling eggs, because the party at the Fed is OVER!”

In another post, he insisted: “Powell must look into it or he is complicit.”

A Biden Appointee Under Fire

Lisa Cook, who was nominated to the Federal Reserve Board by President Joe Biden in 2022, has been part of key monetary policy decisions during a period of high inflation and political scrutiny of the Fed. At the central bank’s most recent Federal Open Market Committee (FOMC) meeting, Cook joined the majority in voting to keep interest rates unchanged.

This decision was at odds with Trump’s repeated calls for aggressive rate cuts, a point of tension that has fueled his broader campaign against Fed leadership.

Broader DOJ Investigations

The Justice Department has so far declined to comment on the matter, as has the Federal Reserve. However, the allegations come at a time when the DOJ is already investigating other prominent figures aligned against Trump, including Sen. Adam Schiff (D-Calif.) and New York Attorney General Letitia James, over similar mortgage-related claims.

Observers note that the case against Cook may represent a widening of Trump’s strategy to cast doubt on political and institutional opponents through accusations of financial misconduct.

A Developing Story

The allegations against Lisa Cook, the demand by Trump for her resignation, and the pressure on Jerome Powell highlight a broader struggle over the future of U.S. monetary policy. As investigations continue, the spotlight remains on the Federal Reserve and the question of whether Cook will remain in her role amid growing controversy.

This is a developing story and updates are expected as the Department of Justice reviews the claims.

The demand that Trump made for Lisa Cook to resign adds fresh turbulence to an already tense relationship between political leaders and the Federal Reserve. With the Department of Justice facing calls to investigate and both the Fed and DOJ declining comment, uncertainty now surrounds Cook’s future at the central bank.

Whether the allegations of mortgage fraud will lead to formal charges or remain part of a larger political fight, the case underscores how financial oversight and partisan battles are increasingly intertwined. For now, Lisa Cook remains in her role, but Trump’s push for her resignation ensures that pressure on the Federal Reserve will only intensify in the weeks ahead.

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Trump Fires Jobs Chief Over ‘Rigged’ Report Claims

In a move that has rattled Washington, former President Donald Trump announced the dismissal of U.S. Commissioner of Labor Statistics Erika McEntarfer, accusing her of manipulating national employment data for political motives — without offering evidence to support the claim.

Trump made the announcement on August 1 via his social media platform, Truth Social, where he criticized the July jobs report that showed only 73,000 jobs were added — significantly below the projected 105,000. He also pointed to downward revisions for May and June totaling 258,000 jobs, calling the entire reporting process “rigged.”

“We need accurate Jobs Numbers,” Trump wrote. “They can’t be manipulated for political purposes.”

A Sudden Shakeup at the Bureau of Labor Statistics

In a stunning and highly controversial move, former President Donald Trump has fired Dr. Erika McEntarfer, the U.S. Commissioner of Labor Statistics, accusing her of deliberately skewing employment data to serve political ends. The dismissal, announced on Trump’s Truth Social platform on August 1, has sent ripples through Washington, with economists, statisticians, and political analysts questioning both the timing and the rationale behind the decision.

The core of the issue stems from July’s jobs report, which revealed that the U.S. economy added only 73,000 jobs—far below economists’ forecast of 105,000. Additionally, job gains for May and June were revised downward by a combined 258,000, sparking concern over a possible economic slowdown. But Trump saw more than just economic warning signs—he saw what he called political tampering.

Trump’s Claims: A Battle Over Trust and Data

Without offering concrete evidence, Trump alleged that McEntarfer—who was appointed by President Joe Biden and confirmed by the Senate in early 2024—was involved in a scheme to “manipulate” jobs data to make the Republican-led economic performance appear weaker and to bolster Democratic nominee Kamala Harris during the 2024 election.

“We need accurate Jobs Numbers,” Trump declared. “Important numbers like this must be fair and accurate—they can’t be manipulated for political purposes.”

He went further, accusing McEntarfer of overseeing previous reports that were later revised downward, asserting that the agency had released overly optimistic data before the election, only to quietly correct them afterward.

However, official records tell a different story. The U.S. Department of Labor publicly disclosed in August 2024—well before the election—that job creation between April 2023 and March 2024 had been overestimated by 818,000. This type of benchmarking revision is common and part of the agency’s routine process of aligning survey data with tax records.

Who Is Erika McEntarfer?

Dr. McEntarfer is no political novice. A seasoned labor economist with more than two decades in federal service, she has held positions at both the U.S. Census Bureau and the Treasury Department. Her appointment to the Bureau of Labor Statistics (BLS) was met with bipartisan support at the time, largely due to her professional track record and nonpartisan background.

Yet, in Trump’s view, her leadership raised questions—not for her credentials, but for what he calls “untrustworthy numbers.” Speaking to reporters, he didn’t mince words:

“I fired her because I think her numbers were wrong.”

Pushback from the Statistical Community

The reaction from former Labor Department officials has been swift and unequivocal. A statement released by a coalition of former BLS commissioners and staff—signed by William Beach, who served as commissioner under Trump—called the accusation “baseless” and “damaging.”

“The Commissioner does not determine what the numbers are but simply reports on what the data show,” the statement clarified.

Experts emphasized that the methodology behind jobs data is purposefully decentralized. Hundreds of career civil servants contribute to the report each month, ensuring that no single individual can alter the outcome. The final report goes through multiple layers of verification before release.

Heidi Shierholz, former chief economist at the Labor Department, said it would be “literally impossible” for any one person—even the commissioner—to manipulate the figures without a massive number of people noticing.

“They’re not political,” she added. “There’s no way those numbers could be faked without widespread objection.”

The Complexity of the Jobs Report

Keith Hall, who led the BLS from 2008 to 2011 under Presidents George W. Bush and Barack Obama, explained that the final employment figure is built from inputs provided by hundreds of economists and survey specialists. According to Hall, even eight to ten staff members see the final number just before its release.

“It’s essentially impossible for the numbers to be fudged,” he said. “All the detail must add up, and many eyes are on it.”

Hall further criticized Trump’s remarks, noting that if there is a downturn in employment trends, such developments are typically reflected across multiple economic indicators—not just the monthly jobs report.

“If the president wants to know what made the numbers weak, he needs to look in the mirror, not at BLS,” he said.

Fallout and What Comes Next

Despite the backlash, Trump has not yet announced a replacement for McEntarfer, stating only that he plans to appoint “someone much more competent and qualified.” The sudden vacancy in one of the government’s most respected statistical agencies has left both markets and officials wondering how politicized the traditionally neutral BLS might become under future leadership.

Labor Secretary Lori Chavez-DeRemer initially did not challenge the July jobs report but later issued a statement expressing agreement with Trump’s emphasis on data integrity.

Meanwhile, many in the economic community have expressed concerns that this episode could undermine public trust in government-produced statistics at a time when the economy is facing new challenges.

The firing of Erika McEntarfer marks a rare and deeply controversial moment in the history of the U.S. Bureau of Labor Statistics—an agency built on decades of nonpartisan credibility. While Donald Trump’s accusations have fueled political debate and drawn sharp responses from former officials and economists, the broader concern now lies in the precedent this sets. If statistical agencies become political battlegrounds, the reliability of critical economic data could be called into question by the very institutions meant to uphold it. As the dust settles, the country finds itself not only facing uncertainty in the job market but also confronting the fragility of trust in facts themselves.

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